BURS adopts new systems to broaden tax base
Brian Benza | Friday December 9, 2016 15:14
With effect from January 01, 2017 BURS says it will introduce a new Customs Management System (CMS) to replace the automated system for customs data, which has been in operation since 2002 and no longer meets current and emerging automation needs of a modern customs service.
In a statement, BURS says the new CMS will allow a quicker, transparent, predictable and user-friendly web-based processing platform that enhances customer service and capability for collection and accounting of customs duties, taxes and levies and; improved capability for border security.
Implementation of the first phase of the CMS project will cover Gaborone, Sir Seretse Khama International Airport, Pioneer Gate and Mamuno Border Post in January 2017 before being rolled out to the rest of Botswana’s border posts and airports between February 1 and March 31, 2017.
“The CMS will be introduced to better assist BURS in processing Botswana’s cross border trade volumes that have been increasing progressively over the years and expectations are that international trade will continue to grow,” BURS stated.
“These growing trade volumes continually place pressure on BURS to put in place commensurate resources whilst ensuring that there are no leakages of revenue intended for the development of Botswana.”
The combined value of exports and imports has increased from P94.2 billion in 2012-2013 to P108.4 billion in 2015-2016.
According to BURS, implementation of second phase of the CMS, which comprises a National Single Window platform as well as an interface with Namibia, is expected to commence from November 2017.
A National Single Window is a platform that will allow all parties involved in cross-border trade to meet all of their obligations for border clearance with all of the appropriate trade related- government ministries and agencies through the single electronic submission of documents and data; a single decision-making process and; a single goods release mechanism.
The expectation is that traders will benefit from the introduction of a National Single Window in the form of less paperwork; shorter time to obtain permit, certificates and licences; improved transparency; and simpler and faster customs clearance.
Government agencies will benefit from improved coordination at border controls, enhanced trade security, more efficient internal operations, increased revenues in some areas and better trade statistics.
“The idea is to reduce processes and documentation required when one is involved in trade through interfacing all government agencies involved.
For example, when one imports a car, there will no longer be need for one to go and queue at BURS, police and then Department of Transport.
The plan is that when BURS receives the customs duty application, their system will link with police for clearance for the car and then the information is sent to Department of Transport where the car will be registered.
We want to do the same thing with other aspects of trade such as agriculture imports where you need a lot of permits.
We also want to rope in the banks for direct payments as well as courier companies,” BURS commissioner of customs and excise, Phodiso Valashia told BusinessWeek recently.
The other part of Phase II of the CMS project, the interface of the Botswana and Namibia Customs IT systems will enable goods destined to Botswana, from Namibia, to be processed simultaneously in Botswana at the time that they are processed in Namibia.
The intention of the part of BURS is that, over the coming years, the interface should be extended to cover the rest of Botswana’s neighbouring countries: South Africa, Zambia and Zimbabwe. This part of the project also aims at reducing clearance time; easier access to trade data; improved and standardised trade statistics; access to advanced information; reduced trading costs and; reduced opportunities for fraud, where some traders over-stated the value of the goods on export in order to benefit from increased VAT refunds and under-state the value of the same goods, when entering Botswana, for purposes of paying reduced Customs duties, VAT and levies.
During the first three months of implementation of the new CMS, traders will be expected to clear all outstanding customs and tax matters that would be outstanding as at January 1, 2017 under the current ASYCUDA system and re-organise their cross-border business processes and procedures to enable smooth introduction and implementation of the CMS. BURS will provide the necessary training for all Customs Clearing Agents and other Customs registrants during the month of December 2016 for purposes of ensuring that cross-border traders receive appropriate guidance on all aspects of the CMS.